|
Dollarizing OK: Fed chief
|
 |
April 22, 1999: 12:17 p.m. ET
Greenspan says other countries adopting dollar is OK in some cases
|
NEW YORK (CNNfn) - Federal Reserve Chairman Alan Greenspan said Thursday that "dollarization" by Latin American countries might help the United States if it promoted stability in the region.
Dollarization is when another country adopts the dollar instead of its own currency. Countries reportedly considering such a move include Mexico, Argentina and El Salvador.
Greenspan appeared with Deputy Treasury Secretary Lawrence Summers at a Senate Banking panel hearing to discuss issues that would arise if other countries wanted to adopt the dollar as their own currency.
"If dollarization helped to achieve greater economic stability and growth in countries in our hemisphere which have suffered so much instability in the past, it would clearly be in the economic and broader national interest of the United States," Summers said in his remarks to the panel.
Greenspan did not deliver a formal statement but said: "The Federal Reserve, myself in particular, find the general thrust of the deputy secretary's remarks very close to ours."
In response to questions from committee members, Summers said no countries had formally asked the United States about converting their currencies to the dollar, which is considered one of the world's most stable currencies.
"We are not contemplating formal requests from any other country," Summers said.
Greenspan, discussing whether U.S. fiscal and monetary policy would be affected by a country that dollarizes, said the Fed, the nation's central bank, would not change domestic interest rates to help other countries if that would hurt the United States.
-- from staff and wire reports 
|
|
|
|
|
 |
|
